For
over 80 years we have been fixing
the price of gold providing market
users with the opportunity to buy
and sell gold at a single quoted price.
It also provides a published benchmark
price that is widely used as a pricing
medium by producers, consumers, investors
and central banks.

The
fix is carried out twice a day by
the 5 members via a dedicated conference
call facility.

At
the start of each fixing, the Chairman
announces an opening price to the
other 4 members who relay this price
to their customers, and based on orders
received from them, instruct their
representatives to declare themselves
as buyers or sellers at that price.
Provided there are both buyers and
sellers at that price, members are
then asked to state the number of
bars they wish to trade.

If
at the opening price there are only
buyers or only sellers, or if the
numbers of bars to be bought or sold
does not balance, the price is moved
and the same procedure is followed
until a balance is achieved. The Chairman
then announces that the price is fixed.
It should be noted that the Fix is
said to balance if the buy amount
and the sell amount are within 25
bars of each other. The Fixing will
last as long as it is necessary to
establish a price that satisfies both
buyers and sellers.

Customers
may leave orders in advance of the
Fixings. Alternatively, they may choose
to be kept advised of price changes
throughout the Fixing and may alter
their orders accordingly at any time
until the price is fixed. To ensure
that the price is not fixed before
the member has had an opportunity
to communicate any changes each member
has a verbal flag. As long as any
flag is raised, the Chairman may not
declare the price fixed.